Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

nVent Electric plc (NVT)

Company Dividend Discount ModelIndustry: Electrical Equipment & PartsSector: Industrials

Valuation Snapshot

Stable Growth$89.62 - $281.06$143.89
Multi-Stage$304.90 - $336.61$320.44
Blended Fair Value$232.17
Current Price$98.64
Upside135.37%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.99%0.00%0.760.700.700.710.720.730.380.000.000.00
YoY Growth--8.56%-0.17%-0.59%-1.09%-1.41%91.89%0.00%0.00%0.00%0.00%
Dividend Yield--1.46%0.94%1.64%2.04%2.57%4.31%1.38%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)602.10
(-) Cash Dividends Paid (M)129.50
(=) Cash Retained (M)472.60
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)120.4275.2645.16
Cash Retained (M)472.60472.60472.60
(-) Cash Required (M)-120.42-75.26-45.16
(=) Excess Retained (M)352.18397.34427.44
(/) Shares Outstanding (M)165.98165.98165.98
(=) Excess Retained per Share2.122.392.58
LTM Dividend per Share0.780.780.78
(+) Excess Retained per Share2.122.392.58
(=) Adjusted Dividend2.903.173.36
WACC / Discount Rate2.20%2.20%2.20%
Growth Rate-1.01%-0.01%0.99%
Fair Value$89.62$143.89$281.06
Upside / Downside-9.15%45.88%184.94%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)602.10602.05601.99601.94601.88601.83619.88
Payout Ratio21.51%35.21%48.90%62.60%76.30%90.00%92.50%
Projected Dividends (M)129.50211.96294.40376.83459.25541.64573.39

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate2.20%2.20%2.20%
Growth Rate-1.01%-0.01%0.99%
Year 1 PV (M)205.33207.40209.48
Year 2 PV (M)276.27281.88287.55
Year 3 PV (M)342.56353.05363.75
Year 4 PV (M)404.42421.02438.11
Year 5 PV (M)462.07485.88510.67
PV of Terminal Value (M)48,914.9351,436.0354,060.02
Equity Value (M)50,605.5853,185.2655,869.58
Shares Outstanding (M)165.98165.98165.98
Fair Value$304.90$320.44$336.61
Upside / Downside209.10%224.86%241.26%

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